Definition of Variable Expense An expense is variable when its total amount changes in proportion to the change in sales, production, or some other activity. In other words, a variable expense increases when an activity increases, and it decreases when the activity decreases. Examples of ...
A fixed cost is one that does not change in total within a reasonable range of activity. Learn more about fixed costs What is a variable expense? An expense is variable when its total amount changes in proportion to the change in sales, production, or some other activity. Learn more about...
A variable expense can change from month to month or week to week. For example, raw materials a manufacturing company uses to produce a final product would be considered a variable expense. Because production levels will cause the amount of materials needed to vary, this is considered a variabl...
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• Note that cyclicality is not the same as variability—stocks with high standard deviations need not have high betas. – Movie studios have revenues that are variable, depending upon whether they produce “hits” or “flops,” but their revenues may not be especially dependent upon the ...
aA corporate expense that varies with production output. Variable costs are those costs that vary depending on a company's production volume; they rise as production increases and fall as production decreases. Variable costs differ from fixed costs such as rent, advertising, insurance and office sup...
What is a variable cost? In a business context, a variable cost is an expense that varies depending on production or sales levels. Unlike fixed costs, which remain the same regardless of output, variable costs may change based on business activity. Variable costs are also pivotal in ...
C. Is an expected future expense that will be different under various alternatives. D. Is an expense that will remain semivariable in total over the relevant range in a given time period. 正确答案:B 分享到: 答案解析: A. Any cost can differ from the standard (budget) amount and usually...
Alternate names: Variable expense, controllable expense A few examples of flexible expenses include what you pay for monthly groceries, clothing, and transportation, as the total cost of all of these things will most likely vary. Note The biggest difference between flexible and fixed expenses is th...